Frontier Energy clears key hurdle to Waroona funding

• CISA is one of the final conditions for financial close on the $280m debt facility
• CISA and WA’s Reserve Capacity Scheme will provide revenue support through 2042
• Stage One combines 132MW of solar with an 81.5MW battery

Special Report: Frontier Energy has cleared another key hurdle to financial close of a $280m debt facility for Stage One of its Waroona renewable energy project in WA, signing a federal revenue support agreement.

The execution of the Capacity Investment Scheme Agreement with the Australian Government provides a minimum level of guaranteed revenue support for the project until 2042.

It provides a revenue floor, with the Government making a top-up payment if project revenue falls below an agreed price.

Further minimum revenue support for Frontier Energy (ASX:FHE) Waroona project comes from Western Australia’s Reserve Capacity Scheme.

“This is yet another major milestone for Frontier in 2026,” FHE executive chairman Jamie Cullen said.

“The execution of the CISA means there are no major CPs remaining on the $280 million debt facility, meaning financial close will take place shortly.”

Securing debt

FHE said that while the CISA does not change Waroona’s forecast revenue, it was a key factor in securing the debt facility.

It adds to the company announcing on November 2, 2026, that it had executed a $280m Syndicated Debt Facility Agreement made up of international lenders led by Natixis CIB and Sumitomo Mitsui Banking Corporation.

The SFA is consistent with the credit-approved underwriting letter and term sheet announced on July 17.

Notably, the combination of the SFA and the $110m placement completed in July is expected to fully fund Stage One of the project through to first energy generation in 2028.

Located about 120km south of Perth, Waroona’s Stage One is designed to capture daytime solar generation and dispatch electricity during evening peaks.

The 132MW solar facility will pair with an 81.5MW battery energy storage system.

FHE plans to hold a sod-turning ceremony at Waroona on November 13 to mark the official start of major construction.

This article was developed in collaboration with Frontier Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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